NRMA wants Sydney tolls capped, traffic audited

The NSW government has been charged with overhauling Sydney's tollroad system after the state's motorists' lobby called for oversight by an independent agency to cap toll fare increases and audit the performance of road authorities.

Kyle Loades, president of the National Roads and Motorists' Association, said he was concerned by reports that toll fare increases on Sydney's proposed WestConnex motorway would be priced above the level of inflation and that the city's tollroad system needed to become fairer and more transparent.

"All other transport services – trains, buses and ferries – are subject to independent price and performance oversight," Mr Loades said. "Roads and tollways, which carry the overwhelming share of daily commuter traffic and freight, should be no different."

Tollroads such as Sydney's Cross City Tunnel could attract more traffic if it was allowed to lower toll fares during off peak periods, a new report on Sydney's road network says. Jon Reid

The NRMA wants the state's Independent Pricing and Regulatory Tribunal, which determines the maximum prices that can be set for water, energy and transport services, to oversee negotiations for any new tollroad contracts or extensions.

It also wants toll fare increases capped at the rate of inflation and flexible pricing arrangements introduced so motorists can pay lower tolls at off-peak times.

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A new report on Sydney's road network by economists HoustonKemp, which was commissioned by the NRMA, claims road congestion could be eased if an independent agency had the power to increase and decrease toll fares across the entire road network.

Toll fares are currently set to try and recover the costs of building and operating specific tollroads. This system has forced some Sydney tollroads, such as the Cross City Tunnel and the Lane Cove Tunnel, into receivership after fewer motorists used the roads than initially forecast.

Adrian Kemp, a founding partner of HoustonKemp, said it would be better if an independent agency adjusted fares across the whole tollroad network, potentially lowering them during quiet periods such as holidays, and then used the collective revenues to pay tollroad operators.

"Anyone that decided not to take a tollroad late at night in order to save themselves the few dollars it would cost them knows that they would be better off if the price was a little bit cheaper, and they decided to use it," Mr Kemp said.

The pricing of roads was no different to the pricing of electricity, which has different rates for peak and off-peak use, Mr Kemp added. "There's nothing particularly unusual about roads which means you should apply the same principles here."

Transurban, which operates most of Sydney's tollroads including the Lane Cove Tunnel and Cross City Tunnel, would like to introduce flexible toll fees on some roads but is prevented from doing so under its current contracts.

The HoustonKemp report has also recommended that Sydney's Roads and Maritime Services agency be benchmarked against performance objectives, with GPS technology now making it easier to monitor traffic flows.

"We believe that the currently lack of road performance objectives is leading to poor investment prioritisation and expenditure decisions by RMS, and stifling operational innovation, impacting directly on the road network performance," the report says.